Microsoft is dialing back its AI sales goals after many sales teams failed to hit their quotas, according to The Information. The company spent most of the year pushing “the era of AI agents,” promising tools that could automate complex work inside Word, Excel, and other Microsoft 365 apps. But enterprise buyers aren’t rushing in.
Azure units that were supposed to boost spending on the Foundry platform by 50% saw fewer than 20% of reps meet their targets. Quotas were then cut roughly in half. Other teams faced the same problem. Companies aren’t ready to pay premium prices for agent tools that still make mistakes—and Copilot is losing ground to ChatGPT inside some organizations, despite company-wide licenses.
Behind the missed numbers is a bigger issue: today’s agents still struggle with accuracy and can’t fully handle the high-stakes tasks Microsoft is pitching. Even so, the company continues to pour billions into AI infrastructure, betting that enterprises will eventually catch up.
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